My blog is about lifestyle(content based),not any kind of product base(business)..so shall i use adwords to drive traffic?
If you have some money to spend, Adwords is a great way to drive traffic to a blog. In your case, you'd want to target non-buying keywords.
That depends on how much you value driving traffic to the site. Are you willing to pay to have your opinion viewed? Your answer to this question is the answer for your adwords question as well. Didn't know people blogged for anything other than to make a quick buck anymore...good for you!
You can use it for your blog, no problem. I would set a low budget and start with really low bids. You might be able to find some keywords that are really cheap traffic. Another thing you should do is put the conversion tracking code on like a newsletter subscription page, or an email signup, etc. This way you will know if you can actually "hook" your readers! You would also figure out which words are most likely to cause people to sign up, etc.
why not? more targeted traffic it can increase your blog popularity if your blog have a good quality content
I'd not venture into AdWords that would cost me money for every click if I don't have a goal. At least make sure your content is good enough to grasp the reader the minute he or she arrives at your site. Otherwise it'd be a big waste of money.